The union facing allegations of corruption and criminality, the CFMEU has written to the Victorian and New South Wales Police Chief Commissioners asking them to investigate the allegations made by the ABC and Fairfax newspapers.The union has rejected claims by Master Builders Australia that a decline in productivity last year was the result of union thuggery.

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MARK COLVIN: The union facing allegations of corruption and criminality has written to the Victorian and New South Wales police commissioners asking them to investigate the claims made on the ABC and in Fairfax newspapers.

At the same time, Master Builders Australia's chief economist says productivity in the building and construction industry fell by 0.6 percent in 2012-2013. He sheets the blame home to union thuggery, and argues for the Australian Building and Corruption Commission to be restored.

Alison Caldwell reports.

ALISON CALDWELL: Peter Jones is the chief economist with Master Builder's Australia. He says the decline in productivity in the building and construction industry during 2012-2013 is likely to be the beginning of a worrying trend unless the Australian Building and Corruption Commission is restored.

Citing figures gathered by the Australian Bureau of Statistics, Mr Jones says on one measure productivity in the sector fell by 0.6 percent in 2012-13. He says productivity in the sector unequivocally outperformed other industries between 2002 and 2012, when the ABCC was up and running.

Dave Noonan is the national secretary of the construction division of the CFMEU (Construction, Forestry, Mining and Energy Union). He rejects the Master Builders interpretation of the ABS figures.

DAVE NOONAN: There reality is that labour productivity has grown strongly over the post-WorkChoices period. In any event, it is widely acknowledged by mainstream economists that industrial relations legislation has only an incidental impact on the questions of labour and multifactor productivity.

There's been a serious spike in labour productivity over the period 2011 to 2013, and many commentators ascribe this as being more likely related to the easing of the peak in mining construction as mining begins to produce and exits the capital phase. So I think this is yet another bogus argument.

ALISON CALDWELL: The Business Council of Australia is saying that criminal conduct in the building and construction sector risks increasing the already high cost of major projects and also undermines the right of people in the workplace to conduct their jobs in a safe, productive and non-threatening manner.

That makes sense, doesn't it, and that's right: if you have Comancheros and bikie gangs coming on to worksites, that just intimidates people, doesn't it? Holds up work?

DAVE NOONAN: Well, the union's position's very clear, and that is that the vast majority of workers in Australia, the vast majority of union members and their representatives and officials, are hardworking, productive and law-abiding citizens. In respect of any individual who breaks the criminal law, the union calls for the police to deal with them.

The argument that the ABCC can somehow deal with criminal conduct is factually wrong. The ABCC is an industrial relations regulator. If there is any evidence of criminal behaviour, it has to and it ought to be dealt with by the police.

I have written to the Victorian and New South Wales police commissioners urging them to deal with any allegations of criminality which have been raised by the Fairfax-ABC report.